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2018 was a challenging year for investors with almost all major global equity indices ending the year in negative territory. As investors grapple with positioning their portfolios for the future, it may be helpful to review how healthcare behaved over the past 20 years.

A flattening yield curve can indicate increased volatility and lower returns for riskier assets. This chart shows why it may be a good time to consider reducing exposure to equities and high yield in favor of an intermediate-term bond solution.

With regard to the stock market, are past trends a sign of what may come? In this commentary, Alex Ely, chief investment officer for the Small/Mid-Cap Growth Equity team, sees a bullish future based on the history of past equity cycles.

Japan, Japanese economy, Abenomics, Japanese investing, Japanese equities,

Despite the existence of notable headwinds, overall momentum in Japan appears positive in the view of the Global and International Value Equity team. Constructive policy steps and an improving Japanese economy provide a backdrop for identifying well-run firms with promising fundamentals.

Large-cap stocks might be top-of-mind for analysts covering the energy sector, but small- and mid-caps play important roles as well. In the oil services industry, state-of-the-art engineering practiced at smaller companies is resulting in real-world benefits.

Even as global economies continue to show signs of improvement, one key factor may be a potential obstacle — the growing overhang of debt. In this commentary paper, our Macquarie fixed income team examines the issue, including practical portfolio considerations for a debt-laden market.

While cryptocurrency has garnered attention, the field of financial technology — or fintech — is on an accelerating trend that offers the potential for investment opportunities, in the view of the Small/Mid-Cap Growth Equity team.

In this brief video, Senior Portfolio Manager Greg Gizzi explains provisions of the recently enacted US tax reform — in particular what they can mean to individual municipal bond investors in both the short and long term.

The final tax bill that was signed into law in December 2017 had several elements that could affect the municipal bond market. In this commentary paper, Senior Portfolio Manager Greg Gizzi breaks down the various provisions of tax reform and what it can mean to municipal investors.

While an opioid epidemic has taken hold across the US, the Small/Mid-Cap Growth Equity team believes there may be hope — and an investment opportunity set — in alternative treatments that may deter abuse and result in lower addiction rates.

The new tax reform legislation has a multitude of factors that could potentially affect fixed income, equity, and real estate, but several of our investment teams see the lower corporate tax rate as a particular key for investors.

The past year has been full of hope and despair for the US dollar. Fast forward nearly a year since the US presidential election, and we are well off the US dollar highs. Sean Simmons puts forth a strong argument that the dollar could correct higher in the coming quarters.

Some central banks are finally signaling moves toward tighter monetary policy, after years of unorthodox quantitative easing. Our fixed income analysts Eric Frei and Shaughn Wilkie look at the implications of these moves on the bond markets.

Despite lack of the robust economic growth that was expected, signs of life continue in the current credit cycle, including encouraging fundamentals. But Paul Grillo, who manages the Total Return Strategies, suggests that factors such as high valuations call for a need to proceed with caution.

With more and more of the world’s competitive firms based outside the US in certain key sectors, a focus on investing beyond American borders takes on new meaning. Our international equity team advisor Larry Franko analyzes the shift in sector dominance.

Where is inflation heading? Signals appear to give mixed messages on a full reflation of the economy. In the Inflation expectations versus reality paper, our fixed income team explores this key risk of inflation, whether it may be returning, and what it means for an investment portfolio.

Many of the uncertainties surrounding President Trump’s administration touch on markets and investing. Those are creating questions on issues ranging from trade to the US Federal Reserve, which have the potential to create market volatility.

Populist movements like Brexit and the US presidential election are rooted in part in a backlash against globalization in areas such as trade and jobs. Our global fixed income team examines the economic fallout, potential solutions, and implications for investors.

With the White House’s goal to bring back US manufacturing jobs, the auto industry has received special attention early on. Michael Friedman, a senior international equity analyst, examines the differences and potential common ground between the Trump administration and carmakers.

Many of those flocking to passive investing may be overlooking the special opportunities of actively managed, small-cap equities. Portfolio manager Kent Madden discusses the edge that active managers can bring in the small-cap space.

Our global fixed income team examines a wide range of issues facing China’s economy, from geopolitical forces to currency to infrastructure development. Team members discuss the outlook for potential stability in spite of global risks.

Fixed income portfolio manager David Hillmeyer discusses diversification in the context of his team’s approach to striving to deliver superior risk-adjusted returns as we move into 2017 [Runtime: 2:11].

While liquidity risk has been a prominent issue for U.S. fixed income markets, does it pose similar challenges overseas? Dean Stewart, executive director of fixed income and currencies at Macquarie Investment Management, summarizes the main liquidity risks influencing global markets.

Election seasons tend to bring out familiar issues, but this year’s cycle has generated discussion about a number of economic and investment topics. This Insight examines five key topics of interest to investors.

International REIT markets rarely move in tandem. Investors who rely too much on one geographical region are taking on undue risk. Portfolio manager Scott Hastings explains the benefits of a broader, diversified approach to making international REIT allocations.

What are behind the pockets of illiquidity that have made trading in U.S. bond markets more challenging in recent years? Senior Portfolio Manager David Hillmeyer explores liquidity and sees possible roots in efforts to avoid another event like the global financial crisis.

A team approach — including close communication and working in sync — can help meet specific challenges such as reduced liquidity, says Brian McDonnell, a senior portfolio manager on the fixed income team.

As the November election approaches, many U.S. voters will choose more than a new president. Many state and local ballot initiatives will also be on the table. Portfolio manager Greg Gizzi looks at proposed measures in two states and their possible implications for tax-sensitive investors.

In a move that speaks to the growing relevance of REITs, major index publishers are planning to separate REIT securities into their own unique sector in August. REITs will no longer be buried within the financials sector, and we think this could potentially be a long-term positive.

With millennials now the largest U.S. population group and with more ability to support the economy in the future, the demographic picture of the United States 20 years from now looks much more sustainable than a similar picture in aging Japan.

The bond liquidity issues that have cropped up in recent years have tended to affect the high yield sector more than others. But, according to portfolio managers Adam Brown and Steve Czepiel, the impact has not been the same in all parts of the high yield market.

As investors digest the bigger meanings of Brexit, they must also consider what comes next for their investment holdings. To help them think about their allocation decisions, we share our assumptions about how different types of asset classes might fare in the post-Brexit landscape.

Mixed signals in the labor market are prompting the Federal Reserve to wait and see if May’s hiring slowdown is something that will continue or turn out to have been an aberration. In this month’s charts, it’s suggested that the optimists may have a reasonably good case as we move into the months ahead.

In the wake of Britain’s decision to leave the European Union, investors are trying to make sense of what might be in store for the region (and indeed the world). There are many moving parts to consider, and the ramifications will take some time to unfold. But several generalities can be drawn at this early stage.

Britain’s potential departure from the European Union — nicknamed Brexit — has caused intense debate, not only in the U.K., but around the world. Several of our portfolio managers who focus on global investing weigh in on the possible implications of a Brexit.

In this month’s chart, we look at the renewed debate about the national debt, and the focus on foreign countries as large holders of U.S. debt securities, but it can be surprising to see that the largest owner of the debt turns out to be the United States itself.

Emerging market equities staged a strong advance during the early months of 2016, following a string of disappointing returns during the past five years or so. Portfolio manager Joseph Devine briefly discusses possible sources of support for emerging market equities, while reminding investors that security selection is important when navigating this heterogeneous and sometimes unpredictable asset class.

When the Delaware Investments REIT team was eyeing the market at the onset of 2016, it stressed the importance of credit markets to the healthy functioning of the real estate sector. As we enter the second quarter of the year, senior analyst Scott Hastings describes how credit conditions are playing out so far.

The amount of U.S. debt, as a percentage of gross domestic product, is mounting to near-historic highs. In this month’s chart, the current debt supercycle is viewed from a financial history perspective, and is nearing the levels last seen just after the end of World War II.

Energy markets have been through a substantial period of volatility, leaving investors with questions about what might lie in store for the companies and organizations that make up the energy sector. Investment specialist, Margaret MacCarthy Bacon, takes a look at how certain players are being affected, and how the economics of the oil market are changing.

Central banks around the world have unique policy tools at their disposal, but few are as specialized as the so-called Tobin tax. Investment strategist Britney Lam explains why this tax is in the news today and how it plays in to her team’s expectations for future monetary policy action in China.

Central banks have tried to steer global economies, but are the markets losing faith in this approach? In this month’s chart, downward-pointing growth and signs of inflation would suggest declining confidence in the power of monetary policy.

On the heels of China’s latest monetary easing move, the Macquarie Asian Listed Equities team believes additional policy easing is yet to come. They also shares two charts that help illustrate their view on Chinese equities going forward.

After a winter of market turmoil and uncertainty, investors may find a relative safe haven, and buying opportunities, in municipal fixed income securities, says Joe Baxter, senior portfolio manager and head of the municipal bond department.

Have the Federal Reserve’s unorthodox policy measures done more harm than good? Paul Grillo, co-chief investment officer, points out several complications that have been set in motion by the central bank’s actions.

This month, we look at how liquidity measures by the European Central Bank and Bank of Japan have pushed global sovereign debt to new levels. The world economy’s capacity for resilience appears to be in question among global investors.

After several years of relative acceleration, M&A activity hit new heights in 2015. Portfolio manager Chris Beck explains the catalysts behind the historic year, and discusses possible options when a deal involves one of his team’s portfolio holdings.

As we make our way into 2016, fixed income markets face explicit headwinds, not least of which is a hangover from unorthodox monetary policy. Paul Grillo, co-chief investment officer for fixed income strategies, explains how these conditions have come about and sheds light on their implications.

A strong U.S. dollar has been a catalyst for market friction that has taken hold for much of 2015 (and the beginning of 2016). International debt analyst Sean Simmons deconstructs the damage left in the dollar’s wake and points to signs that the rout is reaching its final breaking point.

Determination. Focus. Reform. These words, and many more in the same vein, describe the change currently under way in India. While momentum is headed in a positive direction, we stress the necessity for active investment in a part of the world that harbors unique risks.

After a prolonged series of monetary policy initiatives, the U.S. Federal Reserve has amassed an imposing balance sheet. The policy programs have officially ended, but an important remnant could nevertheless continue influencing Treasury markets. Eric Frei, government securities analyst, explains.

After a decade-long absence, higher interest rates are back in the picture as the U.S. economy shows encouraging signs of relative health. How far and how fast will the Fed raise rates? The path will likely be gradual, and a focus on the big picture can help investors stay the course.

In conjunction with what was a highly anticipated December meeting of the Federal Open Market Committee, members of the Delaware Investments fixed income team highlight several of the major factors that are in play across fixed income markets. They touch on monetary policy, the credit cycle, and developments within the high yield sector.

Several measures of consumer appetites are showing signs of strength. These are being offset by new realities that have transpired in the wake of the Great Recession. Portfolio manager Kent Madden describes several relationships that are in play.

The Asian Listed Equities team takes an introductory look at equity investing in China, shows the country requires careful analysis, and reveals its unique market attributes and opportunities amid economic deceleration.

Looking at investment grade bond markets, Senior Portfolio Manager Michael Wildstein addresses technicals, fundamentals, and the current position of the credit cycle. He concludes with a few words on prevailing macroeconomic risks.

As the likelihood of tighter monetary policy increases, Senior Portfolio Manager Greg Gizzi discusses several likely implications for municipal bond allocations. He examines the 2004-2006 period of rate hikes as a basis for his explanation of municipal bond behavior during periods of rising rates.

Two value drivers have helped fixed income markets deliver exceptional returns in recent years. Portfolio manager Paul Matlack takes us through them, explaining what they could imply for future returns and how they affect his team’s outlook.

The banking sector is adapting to the post-financial-crisis environment. Quantitative analyst Sharon Hill explores what the transformation looks like, noting that banks are acclimating well and appear to be supported by several positive factors.

The euro zone economy is under scrutiny as it goes down a bumpy path toward recovery. This scrutiny often focuses on hardships and failings. Investment specialist Margaret MacCarthy Bacon explains that amid the negative news, positive factors are in play.

In their quest for normalization, fixed income markets have been facing steady headwinds. The onslaught includes a remarkably heavy mass of global debt. Portfolio manager Paul Grillo describes how the debt overhang has come about, and what its implications are.

As Japanese Prime Minister Shinzo Abe begins work on the third arrow of his aggressive economic plan, Margaret MacCarthy Bacon looks at the successes that Abenomics has enjoyed and challenges that Japan still faces.

After a long stint as the emblem for an ailing U.S. economy, the housing market appears to be approaching a recovery phase. Portfolio manager Kent Madden points out several housing indicators that are slowly trending back toward pre-recession levels.

Corporations have been friendly to shareholders in recent years, but not so much that they have neglected investing in their future, argues Kelley McKee. Chris Beck notes the important tailwind that dividend growth could play for stocks’ prospects.

The municipal market has experienced a flood of new supply in the first half of this year as issuers look to refund debt early. Greg Gizzi notes that the technical environment, along with a new focus on rating agencies, has dominated the muni markets year-to-date and offers an outlook for the remainder of 2015.

The People’s Bank of China weakened its currency in an effort to spur economic growth. Sean Simmons notes that this could be the beginning of a global currency war and could delay the Federal Reserve from its planned September rate hike.

With China’s stock market posting substantial losses, the government has begun stabilization efforts. Equity Analyst Penghui Sun describes what the interventions look like and briefly discusses the likelihood of realizing their intended effects.

Investors this week have not only had to react to fast-moving developments in Greece but also to the continued correction in China’s stock markets. Yet, activity in the U.S. markets following these developments has been less negative than many investors would have expected.

The Greek referendum vote has essentially put the nation on pause — financially and politically — with the specter of a failed banking system on the horizon. Investment Specialist Margaret MacCarthy Bacon briefly highlights the pressures that are bearing down on the Greek economy, and suggests that the threat of contagion is not as strong as commonly perceived.

Healthcare stocks have performed well in recent years. Senior Portfolio Manager Chris Adams maintains that despite the gains, value opportunities exist. He sheds light on some of the technical conditions that support this view.

The drought in California has had a serious effect on the state’s available water supply and has led to sizeable conservation efforts. From an investment perspective, however, Greg Gizzi notes that the reality for bondholders is not necessarily as dire.

Operating margins are healthy across many corporate sectors, and the Federal Reserve has signaled its intentions to begin raising interest rates in the coming months. This could be the beginning of a supportive period for bank stocks. Equity analyst Michael Foley highlights one banking segment that could see particularly notable benefits.

Auto sales hit a seasonally adjusted annualized rate (SAAR) of 17.8 million in May, according to the Bureau of Economic Analysis. This rate, the highest since summer 2005, is a full million units higher than the 16.8 million year-to-date absolute number (which includes the strong May results).

After several years of wavering volatility, currency markets were shaken in 2014 — and the tension has not let up since. International bond trader Sean Simmons describes several volatility drivers and what they imply for the coming months.

Bob Zenouzi and Scott Hastings of the Delaware Investments Real Estate Securities and Income Solutions investment team discuss the solid fundamentals and favorable capital markets that they believe contribute to a positive outlook for real estate. This is particularly true within the United States, which features healthy credit conditions along with a supportive supply/demand environment. [Runtime: 2:32]

Earlier this week, total housing starts for April came in at 1.13 million on a seasonally adjusted annual rate, representing a 9.2% increase from April 2014 (data: U.S. Census Bureau; U.S. Department of Housing and Urban Development). While housing-starts data are volatile and subject to revision, we believe that housing is on a slow path to recovery and these data support that belief...

Real estate investment trusts (REITs) have grown tremendously over the past two decades, to the point at which they should no longer be considered an “alternative” asset class. Bob Zenouzi discusses REITs’ evolution over time as well as the asset class’s relative strength today. [Runtime: 1:41]

Fixed income markets offer countless types of instruments to meet a wide range of objectives. Nevertheless, newly engineered products continue coming to market. For risk-aware investors, we believe patience and due diligence should be more important than excessive reliance on such new and so-called innovative instruments.

The March retail sales data released yesterday by the U.S. Commerce Department — which showed an overall increase of 0.9%, but only 0.2% when stripping out food and energy — tell us that consumer spending ticked up but is still far from strong.

Overseas suppliers of financing are becoming an increasingly important part of the funding picture for U.S. real estate. Equity analyst Scott Hastings discusses how these sources of credit — particularly those in emerging markets — are contributing to a higher volume of cross-border transactions.

The Institute for Supply Management released its March PMI reading on April 1, coming in at 51.5. This reading indicates a mild expansion, marking the 27th consecutive month of growth within the manufacturing sector. Of the 18 manufacturing industries included in the data, 10 reported some degree of growth.

When interest rates rise, it could be a result of one of several factors. Regardless of the reason, real estate investment trusts comprise a broad asset class, parts of which may be well-suited to ride out any potential disruptions that are caused by a rate increase. [Runtime: 1:57]

The U.S. Commerce Department reported yesterday that orders for durable goods were down 1.4% for February, following a slight drop in January. The data suggest that businesses are still generating relatively weak demand for big-ticket items, putting them on pace to post a weak first quarter overall. Durable goods numbers have fallen every month since their peak in August 2014.

Defying consensus expectations, U.S. retail sales fell in February, marking the third consecutive month of declines. It was the first time since 2012 that sales posted negative numbers three months in a row.

As central banks around the world devalue currencies, markets are unsure about how dangerous this “devaluation feedback loop” could become. Currency specialist Sean Simmons explains the self-reinforcing cycle that is in play and what its ramifications could be.

Sales and profits remain healthy among small-cap companies, lending investors an optimistic outlook for small-cap stocks in the new year. Francis X. Morris believes that conditions for small-cap stocks could actually improve if rates rise in the United States. [Runtime: 1:47]

Following domestic stocks' strong run of recent years, Ty Nutt notes that valuations have risen. Given today's valuation picture, investors may need to lower their expectation for future returns and emphasize value within their portfolios once again. [Runtime: 1:26]

The broad implications of recent strength in the U.S. dollar have come into sharp focus for investors in all asset markets (not just currency markets). Dollar fluctuations can have major effects on many layers of investments, including equities, commodities, and fixed income assets…

As a team that focuses on bond-by-bond credit selection, the Delaware Investments municipal bond group emphasizes the lower portion of the investment grade spectrum. Portfolio manager Greg Gizzi talks about finding value within that part of the credit curve. [Runtime: 2:46]

Capital spending is showing signs of mild improvement. Is this the beginning of a sustained rise? Kelley McKee and Christopher Beck describe where we are in the current capex cycle, taking a look at possible capex drivers as well as certain headwinds.

Legislation in the past several years has led to significant tax code changes, including more brackets at higher income levels and higher rates. Senior portfolio manager Greg Gizzi discusses how these changes are magnifying the appeal of municipal bonds. [Runtime: 3:16]

REITs in developed markets are riding a tailwind of cheap debt while those in emerging markets are slowing due to excessive credit buildup and high-cost capital. Bob Zenouzi shares his insights on this and a range of other topics currently on the minds of global real estate investors.

Municipal update: The July 29 commentary on Puerto Rico’s financial shortcomings has been supplemented with a video. In the piece, Greg Gizzi briefly covers a second potential headwind to municipal markets: pension deficits.

With less analyst coverage and lower levels of liquidity, small-cap companies are uniquely well positioned for active management. Watch as portfolio manager Kelley McKee discusses the rationale for active investing in the small-cap space. [Runtime: 1:37]

Recent upticks in inflation have caused analysts to predict the return of sustainable inflation. We remind readers that a prolonged bout of inflation is unlikely to set in just yet, particularly in light of labor-market dynamics.

Central bank policy, consumer spending, commodities markets, the strength of the dollar… These are among the factors that can influence the direction of inflation. Portfolio managers Kelley McKee and Don Padilla discuss these factors and offer their views on where inflation might be headed. [Runtime: 2:51]

In 2013, healthcare stocks outpaced all sectors within major indices, including small-cap equities. Chris Adams and Kent Madden, of the Delaware Investments Core Equity team and Small-Cap Value Equity team, respectively, explain which subsectors led the way. They make the case for taking an active, stock-by-stock approach to healthcare investing. [Runtime: 3:10]

It's no secret that airline stocks have been tagged as one of the most uninvestable groups in the stock market. Yet after a nearly-four decades-long period of turmoil, today’s airline industry looks healthier than ever, in our opinion. Michael Friedman looks at some of the reasons behind airline stocks’ resurgence in recent years.

Despite transaction volumes that have fallen short of expectations, a moderate pick-up is not out of the question. Portfolio managers Francis X. Morris and Michael S. Morris discuss why. [Runtime: 1:58]

The U.S. energy renaissance may have positive implications for big, established companies. But we believe the potential benefits are not just for large-caps; they extend to small-caps as well. [Runtime: 2:49]

Inflation has long suffered from a bad reputation. But without some degree of price appreciation, economies can suffer. Paul Matlack shares brief notes on how inflation can be a good thing, and why the U.S. needs a dose of it.

Considering private REITs? Scott P. Hastings, senior equity analyst of the Real Estate Securities and Income Solutions team, illustrates the risks and characteristics of private REITs by comparing them to their public counterparts.

Scott Hastings, analyst for the real estate securities and income solutions (RESIS) group, looks at the increasing number of companies seeking REIT status, and discusses how the Delaware Investments REIT team is anticipating what these conversions might mean in the long run.

Paul Grillo, senior vice president and co-chief investment officer for total return fixed income strategy at Delaware Investments, takes us back on “The Great Central Bank Roller Coaster." In this third installment, Grillo takes issue with the “chorus of voices in the media and academia seeking to give intellectual and academic cover to the quantitative easing measures.”

"The election of Shinzō Abe has brought a fresh sense of optimism concerning the Japanese equity market. Ned Gray, senior vice president and chief investment officer of the Delaware Investments Global and International Value Equity team, outlines some potential positive impacts of the changes while also highlighting several caveats..."

After strong returns marked the first two months of the fourth quarter, broad municipal markets declined in December. Based on our research, this marked the first negative monthly return since March 2012, and only the second monthly negative return for all of 2012.

Investors have quickly moved beyond the uncertainty related to the outcome of the November elections, to focus almost entirely on the ambiguity surrounding the outcome of the so-called "fiscal cliff." Like other investors, we are mindful...

Ned Gray, senior vice president and chief investment officer of the Delaware Investments Global and International Value Equity team, provides his thoughts on recent developments in the euro zone, his outlook for global investing in general, and his team’s approach to uncovering investment opportunities.

China’s economy is creating headlines nearly every day. Markets are saturated with analyses of China’s slowing economy, the country’s complicated political environment, or just about any other aspect of Chinese economic life. Indeed, the constant media coverage is understandable, considering China’s enormous contribution to global economic output.

Defaults within the municipal bond market remain rare, even despite several notable cases of distressed cities in recent years.
It's important to learn about municipal bonds' historically defensive nature.

With 10-year Treasury yields at approximately half of what they were just five years ago, some income investors have begun buying alternative investments, often based on yield alone. This trend could be troublesome, according to Bob Zenouzi, chief investment officer of the Delaware Investments® Real Estate Securities and Income Solutions (RESIS) groupgroupteam.

In my opinion piece earlier this year, we dealt with what we consider the defining trend of our time, debt deleveraging, and its effect on economic activity. We also talked about central bank responses to this phenomenon and how financial markets have been influenced by this whole environment. We now have two important updates to this story, which we outline below.

Finding opportunities in the international auto market is like trying to determine the best American cuisine: there’s no one correct answer, because each region has its own specialty. It is important, however, to recognize that there are auto manufacturers and parts suppliers that we believe are likely to outperform others.

A look at the last 15 years (through Dec. 31, 2011) reveals that the relationship between economic growth and equity returns isn’t as definite as might be expected. China’s economy, for instance, posted an impressive average annual growth rate during the period, but the country’s stock-market returns were not necessarily ahead of those recorded in many other countries. Conversely, Brazil’s economic growth was only moderately higher than that for most developed markets, but its equity markets delivered outsized returns.

In today’s low interest rate environment, global equities may offer an alternative for investors looking to add greater income potential to their portfolios.
Is your portfolio positioned to benefit from global equities?

Recent uncertainty over elections in Greece heightened the perceived probability of a breakup of the euro in the short term, which would likely have dramatic, disruptive effects on Greece, as well as the rest of the euro zone. In our opinion, a euro zone breakup would likely entail an effective devaluation across peripheral regions with a corresponding revaluation in whatever currency survived in the core and northern region, whether a newly constituted euro or reinstituted Deutsche mark.

Small-cap price-to-earnings (P/E) valuations have maintained slightly above-average ratios during the past several quarters. We believe small-cap stocks have benefited from a combination of strong earnings in a modestly growing economy and a very accommodative U.S. Federal Reserve that seems intent on keeping short-term interest rates low for an extended period. In our view, the biggest potential headwind for small-cap equities would be a significant slowdown in the U.S. economy.

Though the election of a socialist as the French president may appear strange, or even alarming, from an American perspective, we feel Francois Hollande’s election must be viewed in the context of the French political milieu. France’s political elite draws heavily on a very formal, well-established educational tradition and Mr. Hollande is no exception to this pattern.

Brazil’s central bank aggressively cut rates in March in an attempt to fight the rapid inflation of its currency and jumpstart an economy that continued to sputter in the first quarter of 2012. The sluggish figures carried over from 2011, when the Brazilian economy grew by just 2.9%.

Volatile markets may induce anxiety for some investors, but they can also offer exciting growth opportunities for those best equipped to understand the unique challenges and risks of volatility. Navigating this risk-reward landscape requires a disciplined investment process that fully assesses and manages both of these important aspects.

The landmark healthcare law that was passed in 2010 — and was recently brought before the U.S. Supreme Court — has been likened to some of the most important Supreme Court cases in history. The provisions of the legislation sweep broadly through the U.S. healthcare system, with implications across a wide array of healthcare-related industries. In one way or another, millions of people could potentially feel the resulting effects.

The information technology (IT) sector is particularly interesting to us because, in recent years, certain companies within this sector have exhibited an ability either to establish and control technological standards and intellectual property or to carve out unique competitive positions, or both — and we are interested in these types of technology companies only.

The latest phrase making the rounds of the financial media and market participants is that the European Central Bank (ECB) is “going all-in.” This phrase is particularly perplexing to us as market participants now seem to be all but begging the independent central bank for a market bailout. Anglo-Saxon countries, it seems, have gotten used to monetary bailouts from the Federal Reserve and the Bank of England...

In August 2011, when Congress passed legislation to raise the ceiling on U.S. federal debt, it did so with a major stipulation: A specially appointed “supercommittee” would have to write a plan for reducing the U.S. federal budget deficit by $1.2 trillion over the next 10 years...

Financial markets have reacted severely in recent sessions as soft economic readings have been accompanied by political uncertainty in many countries across the developed world, further inflating investor anxieties...

On April 7, 2011, Portugal formally requested bailout funds from the European Union (EU) and the International Monetary Fund (IMF). The news didn't seem to unnerve investors, primarily because the bailout request had been expected for some weeks...

Over the past several months, a few highly visible commentators have predicted a massive wave of bond defaults in the municipal bond market, with debt repudiations that could reach "hundreds of billions" of dollars over the next year. Most of these analysts do not have direct experience with municipals. For example, high-profile equity analysts, including Meredith Whitney, have argued that the structural problems in U.S. public finance are similar to what occurred in the subprime housing market.

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